Oiling up the field. Forced internal displacement and the expansion of palm oil in Colombia

• We analyze the role forced internal displacement (FID) played in rapid expansion of African palm Colombia from 2002. show that case palm, a positive income shock increases conflict. Different most previous literature, this case, rapacity effect over new land overcomes opportunity cost increase better wages. disentangle how production function, weak institutions, governmental policy, and illegal armed groups shaped direction shock. provide evidence supports hypothesis was direct strategy during conflict not by-product violence. The prices between 2002 to 2007 explains 73% differences FID palm- non-palm producing municipalities. Widespread analysis link natural resources conflicts has shown shocks agriculture usually reduce violence (opportunity effect), while extractive commodities intensify it (rapacity/lootability effect). However, recent works have found cases where lead more examine oil document another higher expected profits led Furthermore, we explore institutional framework effect. Using difference-in-difference strategy, find 1 log point raises rate municipalities by 0.42 standard deviations. supporting need for lands explained linked within which property rights institutions were predominant. Likewise, shed light on shapes relationship