Paragraphing is very important in academic writing. This is partly because it can affect how easily a reader can interpret a text. Pragraphing also potentially allows a writer to express their own voice.
The following link gives some useful advice for writers, especially at postgraduate level:
https://medium.com/advice-and-help-in-authoring-a-phd-or-non-fiction/how-to-write-paragraphs-80781e2f3054#.bci3sovue
Point 3 seems particularly important for many students at Masters levels. The best writing deals with issues by concepts rather than arranged by authors. Arranging an assignment (and particularly a project/dissertation) by key ideas rather than going through summaries of authors is what can distinguish the strongest work from the competent.
Tags: use of literature, postgraduate writing, paragraphing, writing, eap, academic writing