Abstract: On the basis of measuring the level of urban cultural capital development, the urban cultural capital is introduced into the framework of the exogenously expanding economic growth theory as a dummy variable. With the use of one-way ANOVA and introduction of Spatial Lag mode of dummy variable, taking the relevant data from 2005 to 2011 of seventeen districts and counties of Beijing as a research sample, this article explored the correlation between the cultural capital and living standard of residents in urban area, then calculated the influence of cultural capital upon living standard of residents from material capital, manpower capital and social system capital. One-way ANOVA shows that: urban cultural capital is a significant factor which influences the living standard of residents, while spatial lag panel data model shows that: the extent of the influence is greater than the manpower capital but lesser than material capital and social system capital. Moreover, the higher the level of urban cultural capital is, the greater its effect in promoting the living standard of urban residents.