Akademik Məlumat İdarəetmə Sistemi
Artificial Societies, vol.20, no.S3, 2025 (Peer-Reviewed Journal)
This paper presents a new fuzzy modeling algorithm for the Economic Diversification Index (EDI) of Azerbaijan, with a particular focuson industrial production. A fuzzy model using fuzzy logic, principal component analysis (PCA), entropy weighting, and fuzzy regressionis applied to industrial production data for the period 2013–2023. The multi-step approach includes data normalization, phasification,preference matrix construction, and dynamic entropy weighting. The modeling analyzes policy scenarios to predict future diversificationtrajectories. The results show that a reallocation of industrial production—by reducing extractive industries and increasingmanufacturing and renewable energy—can significantly increase the EDI from the Medium-Low to the Medium level. Moreover, theoverall economic diversification index shows positive dynamics, moving from the Low to the Medium-Low level. This study provides apractical, uncertainty-accounting tool that can be useful for policymakers and researchers in assessing and promoting structuraltransformation in resource-dependent economies.