This paper presents an analysis of the linkage between Hungary¡¦s and its neighbouring country, Slovakia¡¦s special kind of political-, and economic relations over the past two decades. The author searches for an answer to the question what fundamental factors, internal and international, determine the long-term growth of the two countries¡¦ bilateral trade and the often tensed bilateral interstate relation as well as how the latter influences economic development in the common cross-border areas. Applying the models of mathematical economics, the author carried out an econometric investigation to prove her hypothesis on the bilateral political relation affects bilateral trade.