TypeScript Version: 3.2.1

Search Terms:
jsx

Code

import * as React from 'react';

function render(url?: string): React.ReactNode {
    const Tag = url? 'a' : 'button';
    return <Tag>test</Tag>;
}

Expected behavior:
Everything is ok. TypeScript 3.1.6 compiles it properly.

Actual behavior:
error: JSX element type 'Tag' does not have any construct or call signatures. [2604]