In Bourne-like shells, it sets the variable ${LIBRARY_PATH} to be the current working directory (at the time at which it is referenced) and exports it for other commands to see.
If you wanted the current directory at the time of export, you would use:
export LIBRARY_PATH=$(pwd)
Note that this command disregards any contents which may have already been assigned to ${LIBRARY_PATH}. If you wish to append to ${LIBRARY_PATH} you could use:
export LIBRARY_PATH=${LIBRARY_PATH}:.
GCC's linker is one such command that will consume ${LIBRARY_PATH}:
The value of LIBRARY_PATH is a colon-separated list of directories, much like PATH. When
configured as a native compiler, GCC tries the directories thus specified when
searching for special linker files, if it can't find them using GCC_EXEC_PREFIX.
See man gcc and man export for more information.