RAMEH REZAZADEHMEHRJOU - Master of Economic Sciences Tarbiat Modares University, Tehran, Iran

Continuous growth and development in the economy need to attend its determinants. Trade is the necessary condition for economic growth and development. One of the factors leading to sustainable economic growth and development is growing export which is the main economical priority for every country in foreign section. It is believed that the increasing volatilities in real exchange rate will create uncertainty in the market place and consequently will increase the risk of business transactions and reduce the level of business. In this paper we explore short run and long run relationship between Iran’s non-oil exports to its trading partners and real bilateral exchange rate, exchange rate volatility and gross domestic product of an importing country. To this end, we use the autoregressive distributed lag method that is reliable for short run and long run relationship between variables

Exchange Rate Volatility, Commercial Relationship, Non-oil Exports