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Citations help the reader see and understand where your information is coming from: it helps them follow the information trail. If the reader wants to follow up on a particular point that you’re making, or a particular reference you have cited, they can do that because citations communicate information about your sources in a standardized format.
Beyond allowing others to understand where you obtained information, there is a strong ethical component to using citations. In an academic environment, you must credit ideas that are not your own, and citations are the primary way credit is given in the academic world. Citations allow you to use the ideas and expertise of others and integrate that material with your own thoughts appropriately and ethically.