Does Google has any negative effect on sites which are using reciprocal linking?
For Google, it might be hard to identify the site linking behavior, but they are actively watching for unnatural linking patterns, and they openly say that reciprocal linking has lost its might unlike before, thus they're devaluing links mainly coming from reciprocation. This means that if your only way of getting links to your site is through reciprocal linking, this will trigger unnatural linking patterns, thus appear too obvious for them to detect and devalue. It is wise then to have a good mix of one way and reciprocal links so to keep things in the natural level and avoid devaluing of links.
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Quite simply I don’t think they need to. If you go overboard with link swapping and create a reciprical link directory off the back of your site which you don’t properly regulate sooner or later you’re going to link out to some crap and get penialised.
I dont think so its put any kind of negative effect on sites which are using reciprocal linking because its kind a exchange link but you need to be carefull about Site PR.
my friend has gaming site with lots of linking with other gaming sites and i can tell you he is not growing in alexa or in visitors, ... so maybe it's to soon to tell, maybe i'm rushing but i don't think it's something special..
You know, Google do not like reciprocal link directories and they can sniff one out a mile off. There was (notice the use of the past tense here) a link directory on my site until recently, but I have now removed it, because it had become as useful as a chocolate teapot.
When you are going with reciprocal linking. You can submit to the relevant directories. And ofcourse, you need to see the website have good pr or not. Atleast 3 ranks more than you. That means if you have 0 pr, they should have 3. This will be good to get good pr for your website and you can get relavant traffic to your site.