Applying Johansson’s multivariate procedure and vector error correction model to time series of 1967-2003, this study investigates the role of non-oil exports in growth of Iran economy. Results of this study showed that in short run, causality direction is from non-oil export growth to non-oil GDP and in long run this is expected to be reverse. Therefore, in short run, non oil export growth has a positive influence on non-oil GDP growth, whilst in long run, non-oil GDP growth has a positive influence on non-oil export growth and not vice versa. Thus, export supporting policies are expected to lead to increase export and GDP only in the short run.

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