Customs Efficiency and Logistics Performance in Azerbaijan: Implications for International Trade Development

Rahiba Abdulhasanova^1* , Sadagat Ahmadova² ,

Zehra Hasanova³ , Zarifa Turabova³

Abstract. This article examines two key determinants of Azerbaijan's international trade performance — customs efficiency and logistics performance — analysing their current state, developmental trajectory, and future prospects. Strategically situated at the crossroads of Europe and Asia, Azerbaijan has made substantial investments in transport infrastructure over the past decade, defined the principal directions of its digital transformation agenda, and is progressively strengthening financial mechanisms to support a transition toward a green economy. Drawing on a structured narrative review of literature published largely between 2016 and 2026, the study discusses established evaluation frameworks such as Data Envelopment Analysis (DEA) and the Logistics Performance Index (LPI), fuzzy logic-based management models, hybrid fuzzy logic–genetic algorithm (FL–GA) optimisation architectures originally designed for IoT-enabled fog–cloud networks, the Baku–Tbilisi–Kars (BTK) railway project, e-logistics platforms, and the influence of geopolitical factors on trade. The synthesis indicates that the prevailing technological gap in customs and logistics operations represents a structural rather than transitional constraint, but the rapid pace of scientific and technological advancement implies a comparatively short window for catch-up. The article concludes that sustainable trade growth requires the integrated modernisation of the customs–logistics system alongside coordinated green-finance and infrastructure policy.

Keywords: customs efficiency, logistics performance, international trade, fuzzy logic, hybrid optimization, digital transformation, green economy, Azerbaijan