This study examined the contribution of real effective exchange rate (REER) to export growth in Ethiopia for the period 1979-2018 by empirically testing the long run and short run relationship and causality between exchange rate and export growth via another macroeconomic variable; real world gross domestic product (RWGDP). The Vector Error Correction Model (VECM) has been employed to estimate the long and short run elasticities. The Granger Causality Test was also applied to determine the direction of causation among variables. The study has concluded that real effective exchange rate has a negative effect on the short run while both real effective exchange rate and real world GDP have a positive effect on exports in the long run.