Probably so, I doubt the people of ancient Lydia would have named their country after nothing. ;)
One of the sources that Google turned up, claimed this:
"The original name of Lydia was Luddu, which became Ludia in ancient Greek. This name was most probably ULU-OD-ÖYÜ (the land of the sacred fire) transforming into Ulu-ud-ia => Luddu => Ludia => Lydia, indicating a sun-worshipping culture whose language originated from the Asiatic Proto-language."
Yet Wikipedia claims that Luddu is the Assyrian name for Lydia, and that the inhabitants of Lydia themselves called their country Śfard. If the latter is truly true, then I'm confused how the ancient Greeks could have come up with the hellenization Lydia, as Lydia obviously does not even remotely look like Śfard. Then, the first explanation seems more likely.
However, I only have Google to rely on for this (which is not always very reliable), so better listen to the people that possess scientific books for solving this matter. :)
"How do you pick up the threads of an old life? How do you go on... when in your heart you begin to understand... there is no going back? There are some things that time cannot mend... some hurts that go too deep... that have taken hold." ~ Frodo Baggins
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