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According to Purdue OWL: "A literature review is a document or section of a document that collects key sources on a topic and discusses those sources in conversation with each other (also called synthesis)."
A literature review is the researchers way of figuring out what has been done in a specific field and if there are any gaps in the research. This includes organizing the literature on the topic, comparing what has been written about the topic and finding any gap in the literature. The literature review can be a stand alone document or a major part in a research study. A literature review is an important step for a student to identify scholars in the field as well as important in understanding what is being done in the field.
The best source I have found in clearly describing the steps in a Literature Review is Purdue OWL. Please click here to find the information.