Literature in this context means existing published knowledge in a particular field that is high quality. It is used correctly in your sentence.

In this context, I think it is good academic English, but it might or might not be saying what you mean. In academic writing, "the literature" means "the body of published work on the topic." "The literature on behavioral economics" might include the published papers and books of Thaler and Kahneman and Ariely. "It's in the literature" is a way of saying "it's well-known, many scientists have studied it." If you write "As shown in the literature [5], the phenomenon is commonplace," I read that to mean "The phenomenon is commonplace. There are many papers that mention it. I could cite a dozen references. But I'm just going to cite the most important to prove that it really is in the literature." It might be better to name the author or authors of the paper, and write something like this: "As shown by Kahneman [5] and others, the phenomenon is commonplace." A "reference" is something, listed at the end of the paper, that tells us exactly where to find the work being cited. For example, "Eugene F. Fama and Kenneth R. French, 'The Cross-Section of Expected Stock Returns,' The Journal of Finance Vol. 47, No. 2 (Jun., 1992), pp. 427-465" A "citation" appears in the middle of the paper and is a short indication of which reference is being cited, e.g. your "[5]" or possibly "Fama and French, 1992." The "literature" is the widely accepted body of published work on a topic. The papers that are referenced are part of "the literature." A "quotation" is an exact copy of a small part of a reference. It is either surrounded by quotation marks or indented in the text. Quotations should always be identified as such, and accompanied by a citation that tells where they came from.

I agree with Kevin that 'literature' is fine here. Published reference material on a given topic can be called 'literature'.

Reference is different from literature. It's not right to change reference into literature. For reports, I suggest using reference not literature. Literature pertains to masterpiece of an author usually a fiction while reference is usually from a research or acclaimed data of an opinionated writer usually non-fiction.