Building High PR links for every page for a targeted keyword would lead to ranking a website top in search engines for the targeted keyword. Reason, Search Engines would build algorithms based on certain parameters and due to the same, we've page rank updates and SERP updates.

So, according to the PR theory, if a website is having a PR 1, it should build links with websites having PR higher than 1. Reason, due to the link building with the website, Page Rank of those website would be shared with one another. Therefore, if PR 1 website has shared a link with PR 3 website, PR 1 website would have a chance of increasing the PR by the next algorithm update.

Also, while building links with high PR, if you build a links based on the targeted keyword, Search engine would consider that link and would display the website in SERP for the keyword utilize in link building. Therefore, due to the link building campaign utilizing the targeted keywords, a website would rank top in search engines for those targeted keywords. Hence, Building links with high PR under particular keyword is important and mandatory to rank top in SERP and increasing the PR.

Ok, but when you say "build links"-- is this simply outgoing links that will be affecting my site positivly? Or are you talking about link exchanges?

I was wondering how linking to a higher ranked site could help my site; Since it is so easy to link to a high ranked site, wouldn't everyone be doing it? It's much harder to get link exchanges, which is why I understand they have more value.

G) Outbound Links:

Some think these links can help your site be seen by the search engines as an authority site, and as an authority site your site might rank better.

Another thought is that the anchor text you choose to use on these links of the link might have some weight.

Needless to say, these links might be good for your visitors.

For sites without UGC, I think who you choose to link to should be a fairly clear signal as to your sites quality. Sending your visitors to muck? Well, thats bad. Allowing your users access to resources? Well, clearly you not only write a good site, but also help your visitors futher. Your site becomes a more valuable resource.

I'm not sure how clear the evidence is that search engines reward good links, but it is certainly something that could be used in future. The obvious problem, as mentioned by previous posters, is the potentail for abuse. You could simply link to the top 5 ranking results for any keyword you were chasing- and how would you break into the top 5 if every other person was linking to them from on-topic pages.