From: Stevens, Anne H. Literary Theory and Criticism: An Introduction. Second edition., Broadview Press, 2021.
"In general, literary theory refers to writings that deal with the underlying principles associated with the study of literature, language, interpretation, culture, and all sorts of related issues. Many of the thinkers who have shaped major theoretical approaches to literature come from areas outside the boundaries of traditional literary studies, especially in fields such as philosophy and the social sciences. Literary criticism usually refers to analysis of a particular work or works: studies of individual authors, genres, literary movements, and the like.
The two terms are closely related, however, since both literary theorists and literary critics study literary texts using a theoretical framework. One way of conceiving of the difference between the two relates to the underlying aims of the writing. A work of literary theory might use literary texts as examples or illustrations that serve to develop a larger theoretical point, while a literary critic might use a theoretical perspective as a means of better understanding a literary text. The distinction is quite subtle and subjective, though, because these two sides -- theory and criticism -- constantly reinforce each other."
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