Electoral Politics of Disaster: how earthquake and pandemic relief was used to earn votes

Disasters can be good for incumbent governments. Amidst an emergency, budgets can be revised and reallocated in a hurry, framing the government as a 'saviour,' issuing contracts to the government's business clientele and/or prioritising the electoral base more than the victims. Thus elected officials can curry favour with voters and increase their chances of retaining their seats. We examine this claim in the context of Albania, a middle-income country with weak public institutions. We show that the relief for two calamities, a destructive earthquake in 2019 and the Covid-19 pandemic, was used by the government to mobilise votes, thereby increasing the likelihood of electoral success in 2021. Both earthquake relief funding and Covid-19 vaccination rates spiked right before the elections only to drop soon afterwards. This phenomenon, known as the Electoral Politics of Disaster (EPD), poses a risk for the national economy, public health, spatial planning and democracy.

THE EFFECT OF THE COVID-19 PANDEMIC ON CONSUMER SAVINGS AND RETAIL SALES: EVIDENCE FROM A POSTCOMMUNIST TRANSITION ECONOMY

When coupled with strong external shocks such as COVID-19, the high levels of uncertainty that characterise fragile economies can have a strong impact on household consumption and saving behaviour. This paper analyses household consumption and saving behaviour in conjunction with COVID-19 in the context of a post-communist economy. Models and intervention analysis are used to identify the effect of catastrophic events such as the COVID-19 pandemic on two key macroeconomic measures for the Albanian economy. The findings show that the pandemic period caused a significant contraction of consumer spending and a significant increase in savings. Higher uncertainty appears to have been a key driver of such household behaviour. The effect on savings will endure in the long run, while retail trade is expected to recover. These findings call for a more astute use of fiscal and monetary policies to address the harmful emerging short-run effect of reduced household spending. © 2022, Economic Annals. All Rights Reserved.

Consumer ethnocentrism and preference for domestic wine in times of COVID-19

Based on the theory of planned behaviour, this study examines the mediation effect of attitudes on the relationship between consumer ethnocentrism and intention to buy domestic wine in transition countries. The survey was conducted on a heterogeneous sample of 372 wine buyers from Albania and Kosovo during 2020, in the middle of the COVID-19 pandemic. Structural Equation Modelling by Partial Least Squares was used to analyse the collected data. The main results of this study show that the theoretical model from the theory of planned behaviour is valid in the case of buying behaviour of domestic wine in Kosovo, while in Albania, the subjective norm has no significant influence on the intention to buy domestic wine and perceived behavioural control has no significant influence on consumer behaviour. Consumer ethnocentrism has a positive influence on attitudes towards buying domestic wine and there is a partial mediating effect of attitudes on the relationship between consumer ethnocentrism and the intention to buy domestic wine. Intention to buy domestic wine shows a very strong and positive correlation with behaviour in both countries. The results of the study provide valuable information for food marketers who should develop an appropriate marketing strategy if they wish to increase the purchase of domestic food, especially wine.