DEVELOPMENT PROSPECTS OF THE ORGANIZATIONAL-ECONOMIC MECHANISM OF AZERBAIJAN'S FOREIGN TRADE ACTIVITY IN THE CONTEXT OF DIGITALIZATION

Abstract

Formulation of the problem. This article explores the development trends, organizational-economic mechanisms, and future perspectives of Azerbaijan's foreign trade activity in the context of digitalization.  The purpose of the study. The purpose of the study is to identify priority areas for improving the organizational and economic mechanism of foreign trade activity of Azerbaijan and to develop scientific and practical recommendations for its development in the context of deepening digitalization of global and national economic processes. The object of the study is the organizational and economic mechanism of foreign trade activity of the Republic of Azerbaijan.Research methods. Using a descriptive-analytical methodology based on secondary data, regulatory documents, corporate reports, and international assessments, the paper evaluates the extent to which digitalization, automation, data analytics, and continuous control mechanisms have strengthened internal control effectiveness. The main hypothesis. Digitalization is a key catalyst for increasing the efficiency, transparency, and competitiveness of the organizational and economic mechanism of Azerbaijan's foreign trade activities. The introduction of innovative digital platforms (e.g., blockchain-based "single window", electronic customs systems, Big Data tools for market analysis) will significantly reduce transaction costs, accelerate logistics and customs procedures, diversify exports, and ensure the country's sustainable economic growth in the long term. Present of the main material. The research determines that in recent years, the implementation of digital platforms such as "Asan Customs" and the "Single Window" system in Azerbaijan has significantly increased the efficiency of foreign trade operations. According to 2024 data, the country's foreign trade turnover amounted to USD 47.4 billion, with a positive trade balance of USD 5.3 billion. Originality and practical significance. The article also analyzes the impact of digital transformation on customs processes, the effectiveness of digital systems during the pandemic period, human capital development, and cybersecurity issues. Conclusions and prospects for further research. The research results indicate that for Azerbaijan to transform into a regional digital trade hub, the application of technologies like artificial intelligence and blockchain, along with the strengthening of international cooperation, is essential.