The transistor is configured as a badly designed "common base" amplifier. Google for "common Base Amplifier"
The LM386 is an LM386. Read the datasheet.
and also is there any improvements I could make on the circuit
Redesign the bias for the transistor.
Add a decoupling capacitor to the supply.
Redesign the switching circuit. One end of the link is always "speaking" when the switch is at rest.
The end of the link without the switch cannot switch from transmit to receive.