Will Google Consider Reciprocal Links?

I am having a small confusion about this, will google consider reciprocal links ?

because there are enough number of backlinks to my site but google is showing only 20 backlinks, while yahoo showing more than 2000, will reciprocal linking acts well for the site?

Google see's a link as a link, they don't have anything in their algorithm that says this is a reciprocal link, or this is a social bookmark or this is a edu link. They take into consideration so much more information that the fact it's a reciprocal link really means nothing other than you got a link to your site.

Does the link page have relevant quality content. Is your link contextual or out randomly in the open. Google can recognize links out in random places like the footer of a page if a link is going to a casino from a real estate site they recognize that and won't give it as much credit.

Google only shows a small sample of links when doing link: hardly anything to take into consideration. Yahoo shows a bit more but again these numbers don't mean much because if the counts are all low quality links a competitor with just a few high quality links will out rank you.