The Gambia is an example of a small, open economy that has had substantial reforms since the 1980s, but despite initiatives to increase capital inflows, development is still erratic. This study examines the impact of foreign capital inflows on economic growth in The Gambia, as well as the part savings and foreign exchange imbalances play in the process. Using data from 1980 to 2023, the Dualgap framework was used in conjunction with the robust econometric methodologies of Fully Modified Ordinary Least Squares (FMOLS)and Dynamic Ordinary Least Squares (DOLS).Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) are two resilient econometric methodologies included in the Dualgap frame wok The results demonstrate that foreign capital inflows and capital accumulation play a major role in driving Nigeria's economic expansion. Foreign exchange limits have significant negative consequences while FDI shows greater growth of 12% compared to remittances' 7% increase. Both the capital augmenting hypothesis and classical growth theory are supported by the results. Foreign exchange limits have significant negative effects, but human capital shows positive significance. The negative labor input coefficient and the negligible savings gaps point to inefficiencies in The Gambia's labor market, which are typified by a greater rate of informal employment. To promote sustainable economic growth, policymakers should create measures to draw in foreign direct investment (FDI), optimize remittance routes, resolve labor market inefficiencies, and put import substitution and export promotion policies into place. Despite a growing reliance on external capital to meet local capital constraints, the article addresses severe foreign exchange and savings restrictions and offers the first empirical evaluation of the relationship between foreign capital flows and growth dynamics.