The Nexus Between Financial Development and Green Logistics: A Comparative Study of Azerbaijan

This study investigates the relationship between financial development and the adoption of green logistics in Azerbaijan. Taking into account the important position of Azerbaijan at the center of the Middle Corridor, the development of green logistics appears to be a crucial issue. By applying a methodological approach of qualitative content analysis and SWOT analysis, the research evaluates the current condition of Azerbaijan in a sustainable trajectory relative to its regional neighbours, specifically Georgia, Kazakhstan and Türkiye. The study is theoretically grounded in Institutional Theory and the Financial Intermediation Theory, providing a robust framework to examine how financial intermediation, regulatory pressures, and resource efficiency promote eco-friendly supply chain practices. By analysing policy documents, Sustainable Finance roadmaps, and Green taxonomy and environmental data from 2020 to 2026, the research identifies key factors affecting the implementation of green logistics practices: green finance opportunities, technological innovation, and government-backed financial incentives. Preliminary findings suggest that Azerbaijan has accelerated its green transition through "Green” financial instruments and digitalization initiatives for a successful decarbonization of the economy. This research contributes to the literature by highlighting the country-specific drivers of green logistics in Azerbaijan. Ultimately, it provides useful insights for policymakers to align financial sector growth with national decarbonization targets, ensuring that the country becomes a sustainable regional hub.