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This study examines the 11 countries most affected by terrorism. (Afghanistan, Pakistan, Egypt, India, Turkey, Iraq, Yemen, Nigeria, the Philippines, Libya, Israel). The data period of the study is 2003-2018 and explores the relationship between terrorism, economic growth and youth unemployment. In the study, the stationarity test of variables was carried out with the CIPS panel unit root test, which takes into account the cross-sectional dependence. In addition, Panel VAR (Vector Autoregressive Regression) and Panel Granger Causality analyzes were used to investigate the relationship between variables. Empirical findings reveal that youth unemployment is more affected by terrorism than growth. In addition, a one-sided causal relationship from terrorism to youth unemployment has been identified. Therefore, it is thought that the improvement in youth unemployment rate will decrease terrorist activities. [ABSTRACT FROM AUTHOR]