ICT in developing countries: Are language barriers relevant? Evidence from Paraguay

We investigate the role of language barriers on both computer adoption and Internet connection in Paraguay, a country in which about 40% of the population is monolingual in Guaraní, 50% bilingual and 6% monolingual in Spanish. Our empirical results show that the ICT diffusion process is highly heterogeneous, reflecting pre-existing inequalities in other socioeconomic dimensions. Parametric estimations also suggest that the Guaraní language constitutes an important cultural barrier to the ICT diffusion in the country. This situation illustrates the cultural barriers that developing countries may face in using ICT.