This paper investigates the economic roots of separatist terrorism in Turkey. The political conventional wisdom is that poverty in highly Kurdish-populated, south-eastern Turkey is one of the most important causes of separatist terrorism and Turkish-Kurdish conflict in Turkey. Therefore, many economic policies have been implemented to improve the economic conditions in the south-eastern part of the country. Using the Global Terrorism Database and Vector Autoregression (VAR) methodology, I find that there is no causal relationship between economic conditions in southeastern Turkey and separatist terrorism. Therefore policy-makers should be cautious in using economic measures to prevent separatist terrorism in Turkey.