Abstract: With the input-output database of WIOD and the large sample micro firms’ merging data, by using GMM two-step system dynamic estimation method, this paper studies how the embeddedness of intra-product specification affects the dual margins of firms’export. The main conclusions are as follows: firstly, the embeddedness has a positive influence on firms’ intensive margins, but no significant influence on extensive margins, which means the embeddedness only improve the total amount of exports but not improve the high-quality of exports; secondly, the influence on dual margins differ among different ownership and trade patterns, the embeddedness stimulates the expansion of intensive margins of processing trade as well as HMT and foreign firms, while it restrains the extensive margins of state-owned or collective firms. The research has practical reference value for the transformation of China's export-oriented development strategy.