Abstract: The deepening of digital transformation has become the core driving force of economic development, reflecting the new era effect of the in-depth comprehensive development of the new technological revolution. According to the changes in production factors and development models brought about by digital transformation to economic development, quantitative analysis is carried out from the two aspects of digital element configuration and digital innovation development. It is found that all economies have improved their level of digital element configuration and digital innovation development, and China's digital transformation level is in a leading position and has great performance in both aspects, has a great competitive advantage. At the same time, the innovative application of CES production function theory is used to demonstrate the decisive impact of digital transformation on economic development. In order to improve the reliability of conclusions, model methods have been used. Through regression models, the average effect between digital transformation and economic development is demonstrated. Through NCA and QCA, the full necessity between digital transformation and economic development has been examined. It is found that digital transformation has shown a significant role in promoting economic development, and the input of data elements is a necessary condition for economic development. Also in order to achieve a high level of economic development, there has three types of sufficiency combination paths, which are factor allocation-driven paths, capital-governance-driven paths and data-governance-driven paths. Through theoretical discussion and empirical analysis, it is found that the role of digital transformation in promoting economic development is long-term and heterogeneous. In different economic types and different time periods, the performance of digital transformation is different. In OECD economies, the improving effect of digital transformation is weaker than non-OECD economies, which is because non-OECD economies are in the initial stages of digital transformation, while OECD economies already have a certain foundation for digital transformation. And since the global focus on digital transformation in 2016, digital transformation has a stronger improving effect on economic development, which shows the importance of government support. As a non-OECD economy, China lags behind in terms of labor productivity, but has a certain digital transformation dividend, digital transformation strongly promotes economic development. At the same time, the level of digital transformation of China is leading in the world, shows a great potential for growth. However, the level of data element is low, failed to achieve the path of digital transformation for high-level economic development. Therefore, China should make full use of digital transformation to achieve “overtaking in curves” at the economic level, and actively popularize digital technology to improve the use of digit element. At the same time, it is important to increase the governance of intellectual property rights and internet security, give the greatest support for the development of digital transformation. What’s more, increase the level of data element is of great importance. Timely adjust the development route according to different situations is also important in developing the level of economy. In one word, China has great potential for development the international competitiveness of digital transformation.