The evolution of the international division of labor under the GVC has profoundly shaped the way of resource exchange in the domestic and international markets. Building a higher quality GVC embedding path is of great signififi cance for improving the effifi ciency of domestic resource allocation and realizing the recyclability of the internal market. Paper measures the external, internal and external synergy, and internal driving force which is contained in GVC embeddedness, and discusses its impact on the misallocation of manufacturing resources systematically. Research shows that the external driving force has a stronger effect on opening up the circulation channels of resources between industries, and the internal driving force has a stronger effect on opening up the circulation channels of resources between enterprises. A nonlinear analysis shows that the relationship between internal driving force and resource misallocation is in an inverted U-shape. When the internal driving force increases beyond the critical value of the nonlinear relationship, it will play a sustainable role in the optimal allocation of resources. Although the relationship between internal and external synergy, external driving force and resource misallocation is U-shaped, it has the asymmetric characteristic of "high left and low right". The improvement effect of external driving force on resource misallocation is the main trend of manufacturing industry to participate in GVC. Mechanism analysis found that the division of labor cooperation mechanism, outward agglomeration mechanism and structural upgrading mechanism has enhanced the optimizing effect of GVC embedding. Regardless of within or between industries the improvement effect of the outward agglomeration mechanism is the strongest. GVC and domestic production systems show collaborative optimization effect.