Virtual inertia is known as an inevitable part of the modern power systems with high penetration of renewable energy. Recent trend of research is oriented in different methods of emulating the inertia to increase the sustainability of the system. In the case of dynamic performance of power systems especially in automatic generation control (AGC) issue, there are concerns considering the matter of virtual inertia. This paper proposes an approach for analyzing the dynamic effects of virtual inertia in two-area AC/DC interconnected AGC power systems. Derivative control technique is used for higher level control application of inertia emulation. This method of inertia emulation is developed for two-area AGC system which is connected by parallel AC/DC transmission systems. Based on the proposed technique, the dynamic effect of inertia emulated by storage devices for frequency and active power control are evaluated. The effects of frequency measurement delay and PLL effect on are also considered by introducing a second-order function. Simulations performed by Matlab software demonstrate how virtual inertia emulation can effectively improve the performance of the power system. A detailed eigenvalue analysis is also performed to support the positive effects of proposed method.