It does most specially if you are providing unique contents atleast twice a week. The more you update the more you can get backlink from it specially if you caught the attention of webmasters that has the same category as yours with high PR.
ithink blogging is good for get more traffic, but you must chose good blog for that, so you can get good backlinks
Yes. Just do blog daily, dont just copy paste articles from anywhere and make sure that you only publish quality content. Get true followers by being a passionate blogger.