Linking to other websites is a great way to provide value to your users. Most of the times, links help users to ‘find out more’ to check out your sources and to understand better how your content is relevant to the questions. If you are linking out to a website with the same topic, that might help in improve your ranking.
If you are linking out to a site, because of a bargain like, you linked to me and I’ll link to you or because it’s an advertisement or if it’s being done in your site’s comments and that is definitely not good those links are. The great method in this condition is, use rel nofollow link attribute. However, if you’re linking out naturally from your content to other sites that offer additional value and more context, then that’s fine. So, Good external links can give a boost to your website ranking.