Applying Johansson’s multivariate procedure and vector error correction model to historical data of 1967-2003, this study investigates the role of export in Iran economy. Results of this study showed that in the short run, causality direction is from non-oil export growth to non-oil GDP and in the long run this is expected to be reverse. Therefore, in the short run, non oil export growth has a positive influence on non oil GDP growth, whilst in the long ru n, 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 increased export and GDP only in the short run. Keywords: export-led growth, Johansson’s procedure, short and long run causality, Iran

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