TSConfig

Specify the module resolution strategy:

• 'node16' or 'nodenext' for modern versions of Node.js. Node.js v12 and later supports both ECMAScript imports and CommonJS require, which resolve using different algorithms. These moduleResolution values, when combined with the corresponding module values, picks the right algorithm for each resolution based on whether Node.js will see an import or require in the output JavaScript code.
• 'node10' (previously called 'node') for Node.js versions older than v10, which only support CommonJS require. You probably won’t need to use node10 in modern code.
• 'bundler' for use with bundlers. Like node16 and nodenext, this mode supports package.json "imports" and "exports", but unlike the Node.js resolution modes, bundler never requires file extensions on relative paths in imports.
• 'classic' was used in TypeScript before the release of 1.6. classic should not be used.

There are reference pages explaining the theory behind TypeScript’s module resolution and the details of each option.