This paper provides valuable insights for improving the persistent US trade-deficit issue from geospatial perspective. The main US export destinations are the West-European countries of the European Union and Japan. The determinants of the US exports were highly related to countries with outward foreign direct investment from the US corporations and were highly open for international trade. Also, these countries tended to have a higher GDP per capita and have regional economic integration agreements according to empirical evidence of the Spatial Durbin Panel Model. Our paper is substantively important because spatial quantitative techniques eliminate the bias when spatial effects exist. Intriguingly, some of the largest US trade -partner countries: Central and South America countries, China and other East Asian countries were not critical to US exports. Also, south Asia and Africa continent are mostly neglected from US exports. The discerning findings illuminate that US trade deficits resulted from its exports concentration on a few regions in the world. It is suggested that the US could increase its exports by diversifying and expanding US exports into countries of different regions and hence, improve US trade deficits. The findings of this paper have important implications to the corporate strategy and government policy.
