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:
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.
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I am glad you found it useful, Hui. Many of the points in the link are relevant for writers of any first language, including English.