Abstract Based on the world input-output table from 2000 to 2018, this paper constructs an index to measure the intensity of China’s participation in domestic and international cycles, and empirically tests the mechanism and impact of global value chain embedding on domestic cycles. The research results show that the embedding of global value chains helps promote the formation of domestic circulation, and this promotion has a nonlinear effect of increasing marginal effects. Distinguishing the forward and backward embedding patterns, it is found that the forward embedding pattern characterized by forward participation is conducive to the formation of domestic circulation, while the backward embedding pattern characterized by backward participation is not conducive to the formation of domestic circulation. After in-depth analysis of the channels of action of the global value chain, it is found that there are significant differences in the impact of different embedding models of the global value chain on the domestic cycle under the three modes of action: consumption capacity improvement effect, output scale effect and productivity improvement effect. Therefore, promoting high-level opening up to the outside world and building a new open economic system will help promote the realization of a new dual-cycle development pattern with the domestic cycle as the main body.
2024, Vol. 41 
