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Political, economic and cultural connections between Afghanistan and South Asia have been long‑lasting and strong throughout the centuries, not only because of the geographical closeness of the regions, but also due to the genetic relationship of their peoples. In the 21st century, due to rapid geopolitical changes and globalization the mutual relations of these two regions are becoming more and more important, not only on bilateral level, but also from the point of view of the regional and international interests. The aim of this article is to concisely show how the relations between Afghanistan and South Asia developed over the history, with special attention given to the current state of affair.
EN
The study attempts to analyse India's trade potential with other SAARC member states under the SAFTA agreement by means of the augmented gravity model, at annual frequency from 1992 to 2019 in general and from 2004 to 2019 in particular. The findings of this paper prove that the intra-regional trade volumes between SAARC countries can be increased and encouraged. Moreover, the research shows that it is important to introduce structural reforms aiming to boost trade with non-member states. It would be advisable for researchers to take into account the effect locational and infrastructural advantages have on transport costs through the application of a gravity model. Previous research has also demonstrated that the augmented gravity model may prove helpful in explaining some key features of South Asian trade, which traditional gravity models fail to do.
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