Identifying parallel web pages from bilingual web sites is a crucial step of bilingual resource construction for crosslingual information processing. In this paper, we propose a link-based approach to distinguish parallel web pages from bilingual web sites. Compared with the existing methods, which only employ the internal translation similarity (such as content-based similarity and page structural similarity), we hypothesize that the external translation similarity is an effective feature to identify parallel web pages. Within a bilingual web site, web pages are interconnected by hyperlinks. The basic idea of our method is that the translation similarity of two pages can be inferred from their neighbor pages, which can be adopted as an important source of external similarity. Thus, the translation similarity of page pairs will influence each other. An iterative algorithm is developed to estimate the external translation similarity and the final translation similarity. Both internal and external similarity measures are combined in the iterative algorithm. Experiments on six bilingual websites demonstrate that our method is effective and obtains significant improvement (6.2% F-Score) over the baseline which only utilizes internal translation similarity.