"Literacy" in EFL research usually pertains to understanding and producing written texts in English, as well as the associated skills such as comprehension, interpretation, and expression through writing. It may encompass different levels of competence, from basic literacy skills to advanced academic or professional literacy in English.
While "competence" can be related to literacy, it is a broader term that encompasses various aspects of language proficiency, including speaking, listening, reading, and writing. Competence in EFL research would refer to a more comprehensive understanding of language abilities, not limited solely to reading and writing skills.
"Literacy" could refer to "competence" in EFL research, but it depends on how you explain its definition.
For example, one way to think about literacy in EFL research is as the ability to use English for academic and professional purposes. This includes the ability to read and understand English texts, as well as the ability to write and speak English effectively.
Another way to think about literacy in EFL research is as a more critical and analytical skill. This includes the ability to evaluate English texts critically, to identify and challenge biases, and to use English to communicate complex ideas.
The word "Literacy" can be used to refer to a variety of different competencies in EFL research. It is essential to be clear about the specific definition of literacy used in a study.
Literacy is a part of competence and is referred to correct usage of language esp. written. It is closer to performance because it presupposes language usage. Competence is more ideal, generalized knowledge or understanding how a certain languge works.