Oil palm development and forced displacement in Colombia: Causal or spurious?

Monica Hurtado Lozano, Catherine María Pereira Villa, Edgar Villa Pérez
2017 Cuadernos de Economía  
This article analyses whether forced displacement in the Magdalena Department (Colombia) between 2000-2010 was caused not only by the intensity of the armed conflict but also by the growth of the palm agribusiness. We find that a seven percentage point increase in the area used to produce palm per municipality caused an increase of a third of a standard deviation in the rate of forced displacement. These calculations were made on average and after controlling for armed conflict. We rationalize
more » ... ct. We rationalize this finding by the fact that the development of the palm oil agribusiness caused displacement due to its land-intensive technology, increasing international prices combined with government subsidies, and the process was aided by paramilitary activities in the region.
doi:10.15446/cuad.econ.v36n71.52554 fatcat:wdgv3nzu65a4xpy47lwsrp4fl4